Free Preparation Discussions
MENU
IMANET Exam CMA Topic 5 Question 107 Discussion
Topic #: 5
Copeland Inc. produces X-547 in a joint manufacturing process. The company is studying whether to sell X-547 at the split-off point or upgrade the product to become Xylene. The
following information has been gathered:
I . Selling price per pound of X-547
II . Variable manufacturing costs of upgrade process
Ill . Avoidable fixed costs of upgrade process
IV . Selling price per pound of Xylene
V . Joint manufacturing costs to produce X-547
Which items should be reviewed when making the upgrade decision?
If the 8% return exactly equals the present value of the future flows ., NPV is zero), then simply determine the present value of the future inflows. Thus, Hopkins Company's initial cash outlay is $19,090 [($2,500)(PVIFA at 8% for 10 periods) + ($5J00)(PVlF at 8% for 10 periods ($2,500)(6.710) + ($5,000)(.463)].
Yvonne
10 days agoCharlena
12 days agoFrancoise
16 days agoBea
17 days agoMyong
24 days ago